"appropriate authority"  means the board or management of a statutory or local authority;

  "employee"  means a person on full time employment of a statutory or local authority;

  "Employees Provident Fund"  means a provident fund established under the Employees Provident Fund Act 1991 , including an approved fund as defined in that Act;

  "Employees Provident Fund Scheme"  means a scheme under which an employee ceases to be eligible to be conferred the status of a pensionable employee or ceases to be a pensionable employee and is instead required to contribute, together with his employer, to the Employees Provident Fund;

  "employer"  means a statutory or local a

3 -3. Pensions, etc., not an absolute right.

(1) No employee shall have an absolute right to compensation for past service or to any pension, gratuity or other benefit under this Act.

(2) Where it is established to the satisfaction of the Minister by an appropriate authority that an employee has been guilty of negligence, irregularity or misconduct, the Minister may reduce or withhold the pension, gratuity or other benefit for which such employee would be eligible but for this section.

4 -4. Pensions, etc., charged on the Consolidated Fund.

(1) Pensions, gratuities and other benefits granted under this Act shall be charged on the Consolidated Fund from l January 1981.

(2) Payment of any pension, gratuity or other benefit granted under this Act up to 31 December 1980 shall be made from the Fund established under the Statutory and Local Authorities Superannuation Fund Act 1977.

5 -5. Computation of pensions, etc.

(1) Any pension, gratuity or other benefit granted under this Act shall be computed in accordance with the regulations; provided that, in the case of retirement under paragraph (a) of subsection (5) of section 10 or under section 13, the amount of pension granted shall not be less than one-fifth of the employee's last drawn salary.

(2) For the purpose of subsection (l), the last drawn salary of an employee who retires before being confirmed in his second or subsequent appointment shall be the last drawn salary of his former appointment in which he had been confirmed had he remained in his former appointment until his retirement.

(3) Any pension, gratuity or other benefit granted to an employee who retires under section 11 shall be computed in accordance with the regulations where the total period of his reckonable service shall be counted as if he had served until his compulsory age of retirement, whichever is applicable to him

6 -6. Conferment of pensionable status.

The pensions authority may confer a permanent employee the status of a pensionable employee if he has -

(a) been confirmed in his present appointment; and

(b) completed not less than ten years' reckonable service.

6A -6A. Exercise of option.

(1) An employee appointed on or after the commencement of this section shall, before being confirmed in his appointment, be entitled to opt for the Employees Provident Fund Scheme.

(2) The option under subsection (1) shall be made to the appropriate appointing authority in such manner as may be determined by the pensions authority.

(3) The exercise of the option by an employee under this section shall take effect on his being confirmed in his appointment and shall thereupon be irrevocable.

(4) Where an employee opts for the Employees Provident Fund Scheme, the provisions of this Act, except this section and section 26, shall not apply to such employee.

(5) An employee who opts for the Employees Provident Fund Scheme shall retire from the service of a statutory or local authority on attaining the age of sixty years.

[Ins. Act A1125; Am. Act A1336; Am. Act A1125; Am. by Act A1410:s.3]

6B -6B. Pensionable employee may opt for the Employees Provident Fund Scheme.

(1) An employee-

(a) who has been conferred the status of a pensionable employee under section 6 or is deemed to be a pensionable employee under paragraph (a) , (b) or (c) of section 7; or

(b) who was appointed before the 12 April 1991 and has not been conferred the status of a pensionable employee,

may opt for the Employees Provident Fund Scheme.

(2) The option under subsection (1) shall be made to the appropriate appointing authority in such manner as may be approved by the pensions authority.

(3) The exercise of the option by an employee under this section shall take effect on the option being accepted by the appropriate appointing authority and shall thereupon be irrevocable.

(4) A pensionable employee shall cease to be a pensionable employee upon his option taking effect.

(5) Subject to subsection (6), the provisions of th

6C -6C. Retrospective contributions to the Employees Provident Fund.

An employer shall make contributions, in respect of each pensionable employee whose option has taken effect, to the Employees Provident Fund at the rate of seventeen and a half per centum of the employee's monthly salary for each month in the period commencing from the date the employee becomes a pensionable employee under section 6 or section 7 and ending on the date he ceases to be a pensionable employee under section 6B.

6D -6D. Employer may offer Employees Provident Fund Scheme.

For the purpose of this Act, it shall be lawful for an employer to offer to an employee an option to opt for the Employees Provident Fund Scheme under section 6B.

6E -6E. Pensionable employee may opt for Pension And Employees Provident Fund Scheme.

(1) An employee, who has been conferred the status of a pensionable employee under section 6 or is deemed to be a pensionable employee under paragraph (a), (b) or (c) of section 7, may opt for the Pension And Employees Provident Fund Scheme.

(2) The option under subsection (1) shall be made to the appropriate appointing authority in such manner as may be approved by the pensions authority.

(3) The exercise of the option by an employee under this section shall take effect on the option being accepted by the appropriate appointing authority and shall thereupon be irrevocable.

(4) A pensionable employee shall continue to be a pensionable employee upon his option taking effect, but his service after his option takes effect shall not be taken into account for the purpose of computing his reckonable service. [ Ins. Act A1006 ]

6F -6F. Employer may offer scheme under section 6E.

For the purposes of this Act, it shall be lawful for an employer to offer to an employee an option referred to in section 6E.

[ Ins. Act A1006 ]

6G -6G. Continued application of this Act and application of Act 452.

(1) Subject to subsection (4) of section 6E, the provisions of this Act, except subsection (4) of section 6A, sections 6B, 6C, 6D and subsection (1) of section 8, shall continue to apply to, and the Employees Provident Fund Act 1991 shall apply to, a pensionable employee who opts for the Pension And Employees Provident Fund Scheme under subsection (1) of section 6E.

(2) For the purposes of this Act, where a pensionable employee opts for the Pension And Employees Provident Fund Scheme under subsection (1) of section 6E, he may, upon his retirement under section 10, 11, 12 or 13 from the service of the statutory or local authority, be granted a pension, gratuity or other benefit based on his reckonable service in the statutory or local authority, computed in accordance with the regulations.

(3) Where a pensionable employee who opts for the Pension And Employees Provident Fund Scheme under subsection (1) of section 6E-

7 -7. Employees deemed to be pensionable employees.

Without prejudice to section 6, the following employees shall be deemed to be pensionable employees:

(a) an employee who has already been emplaced or qualified to be emplaced on the pensionable establishment under the Statutory and Local Authorities Superannuation Fund Act 1977 prior to 1 July 1977 in the case of an employee in West Malaysia or l July 1978 in the case of an employee in Sabah or Sarawak;

(b) an employee who has been conferred the status of a pensionable employee by the appropriate authority before the publication of this Act;

(c) a pensionable officer under the Pensions Act 1980 or any other written law and who is permanently transferred by appointment to a statutory or local authority; and

( d ) a permanent and confirmed employee who dies in service, retires on medical grounds or under section 13 before completing ten years' reckonable service:

8 -8. Contributions.

(1) An employer shall make monthly contributions to the Pensions Trust Fund established under the Pensions Trust Fund Act 1991 at the rate of seventeen and a half per centum of the employee's monthly salary in respect of each pensionable employee and such rate shall take effect from 1 January 1981.

(1A) The organization to which a pensionable employee is appointed by or with the approval of the Government under section 13 (2) shall make monthly contributions to the Pensions Trust Fund established under the Pensions Trust Fund Act 1991 at the rate of seventeen and half per centum of such employee's monthly salary in respect of each pensionable employee whilst he is on the same terms and conditions of service as in the New Scheme.

(2) Notwithstanding subsection (1), all monthly contributions by an employer up to 31 December 1980 shall be paid into the Fund established under the Statutory and Local Authorities Superannuation Fund Act 1977

9 -9. Grant of pensions, etc .

(1) A pensionable employee may be granted a pension, gratuity or other benefit on -

(a) compulsory retirement under section 10;

(b) retirement under section 11; or

(c) optional retirement under section 12 after completing a period of not less than ten years' reckonable service.

(2) A pensionable employee may be granted a pension, gratuity or other benefit if the retirement is under section 13.

10 -10. Compulsory retirement.

(1) Subject to subsections (3) and (4), an employee shall retire from the service of a statutory or local authority on attaining the age of sixty years.

[Am. Act A1336; Am. Act A1125; Am. by Act A1410:s.4]

(2) (Deleted by Act A1125)

(3) Where an employee attains the compulsory retirement age of fifty-five, fifty-six, fifty-eight or sixty years, as the case may be, and a criminal or disciplinary proceeding which may result in his conviction or dismissal is not concluded, his service shall be deemed to have been extended beyond any of that age, as the case may be, but on no-pay leave until his case is determined.

[Subs. Act A1336; Am. by Act A1410:s.4]

(4) Where the criminal or disciplinary proceeding under subsection (3) does not result in his conviction or dismissal, he shall retire on attaining the age of fifty-five, fifty-six, fifty-eight or sixty years, as

11 -11. Retirement at the instance of the Minister.

Notwithstanding sections 10 and 12, with the consent of the employee, the Minister may require an employee to retire at any age -

(a) on grounds of national interest; or

(b) in the interest of the service of the statutory or local authority.

12 -12. Optional retirement.

(1) An appropriate authority may, with the approval of the pensions authority on the employee's application, consent to the retirement of an employee on or after attaining the age of forty years.

(2) Where an employee who is appointed before the commencement of this section retires under subsection (1), such employee may be granted a pension only on attaining the age of -

(a) forty-five years for -

(i) a female employee; and

(ii) an employee of the fire service holding the rank of sub-officer and below; and

(b) fifty years for a male employee, other than an employee referred to in subparagraph (ii) of paragraph (a).

(3) Where an employee who is appointed after the commencement of this section retires under subsection (1), such employee may be granted a pension, only on attaining the age of fifty-five years.

[Am. Act A1344]

(2) [Deleted by Act A1344]

16 -16. Derivative pension where an employee dies after retirement.

(1) Subject to section 17 -

(a) [Deleted by Act A1344]

(b) where a pensionable employee dies within or after twenty years from the date of his retirement the Minister may grant to the person prescribed in the regulations a derivative pension equivalent to the amount of pension paid to him:

[Am. Act A1344; Am. by Act A1410:s.7]

Provided that any grant of derivative pension after the expiration of the period of twelve and a half years from the date of his retirement shall only be made where the recipient-

(i) in the case of a widow or widower, was married to the deceased employee while the employee was still in service;

(ii) in the case of a child or dependant stepchild, is a child or dependant step-child of a marriage that had taken place while the employee was still in service;

(iii) in the case of an adopted child is

16A -16A. [Deleted by Act A1344] .

17 -17. Cessation of derivative pension.

A derivative pension granted under this Act shall cease if the recipient is -

(a) [Deleted by Act A1172] .

(b) a child, other than a child who is mentally retarded or physically and permanently incapacitated and incapable of supporting himself or a child referred to in paragraph (c) , upon marriage or upon attaining the age of twenty-one, whichever is the earlier; or

(c) a child who is receiving education in an institution of higher learning but not beyond education leading to a first degree, upon completing or ceasing to receive such education or upon marriage, whichever is the earlier.

18 -18. Cessation of pension in respect of child attaining age of eighteen deemed valid.

(1) Notwithstanding section 17, where prior to the publication of this Act any payment in respect of a derivative pension or other benefit payable to a child has ceased upon the child attaining the age of eighteen, such cessation and any apportionment of the derivative pension or other benefit to any other dependants subsequent to the cessation shall be deemed to have been properly and validly done.

(2) Where subsection (1) is applicable, but such child is under this Act eligible to be paid a derivative pension or other benefit, such child shall, subject to section 17, be paid the portion of the derivative pension or other benefit due to him as from the publication of this Act.

19 -19. Disability pension.

(1) In addition to payments under section 9, the Minister may grant a disability pension under the regulations where an employee, other than a contract employee, is required to retire as a result of-

(a) sustaining an injury in the course and arising out of performance of his official duty or due to a travel accident; or

(b) contracting a disease to which he is exposed by the nature of his duty.

(2) For the purpose of subsection (1), "injury" or "disease" means injury or disease which is not due to, or aggravated or contributed by, his negligence or misconduct.

20 -20. Dependant's pension.

In addition to derivative pension and derivative gratuity, the Minister may grant to an employee's dependants a dependant's pension prescribed in the regulations where -

(a) the employee dies in the circumstances under section 19; and

(b) such death occurs within seven years of the date of sustaining the injury or contracting the disease.

21 -21. Pension, etc., not to be assignable.

Any pension, gratuity or other benefit granted under this Act shall not be assignable or transferable or liable to be attached, sequestrated or levied upon in respect of any claim except for the purpose of satisfying -

(a) a debt due to the Government, or the Government of any State, or a statutory or local authority;

[Am. by Act A1410:s.8]

(b) an order of a Court for the payment of periodical sums of money towards the maintenance of the wife or former wife or child, whether legitimate or not, of the employee to whom the pension, gratuity or other benefit has been granted; or

[Am. by Act A1410:s.8]

(c) an order of a court issued in relation to bankruptcy matters under any written law relating to it.

[(c) Ins. by Act A1410:s.8]

22 -22. [Deleted by Act A1410] .

23 -23. Pension, etc ., to cease on conviction.

(1) Subject to subsection (2), where any person to whom a pension or other benefit has been granted under this Act is sentenced to death or to any term of imprisonment by a Court, such pension or other benefit shall cease forthwith.

(2) The pension or other benefit under subsection (1) shall be restored with retrospective effect in the case of a person who after conviction receives a free pardon.

(3) Where a pension or other benefit ceases under subsection (1), the Minister may grant an alimentary allowance equivalent to the whole or any part of such moneys to which the pensioner would have been entitled by way of pension or other benefit as he thinks proper to the pensioner's wife or children for their maintenance and benefit and, after the expiration of his sentence, to the pensioner himself.

23A -23A. Pension, etc ., to cease on acquiring citizenship of other country.

(1) If a person who has been granted a pension or other benefit under this Act has voluntarily (other than marriage) acquired citizenship of, or exercised rights of citizenship in, or has made a declaration of allegiance to, any other country other than Malaysia or has been deprived of his Malaysian citizenship, such pension or other benefit shall cease forthwith.

(2) Where pension or other benefit ceases under subsection (1) no pension or other benefit shall be granted to the dependants.

24 -24. Maximum pension.

A pension granted under section 9, 15 or 16 shall not exceed three-fifths of the employee's last drawn salary.

[Am. Act A1344]

25 -25. Lowest pension for full service.

In the case of a pension which has been calculated on the basis of reckonable service of not less than twenty-five years, the amount payable under this Act shall not be less than one hundred and eighty ringgit per month or any such amount as may be determined by the Minister from time to time by notification in the Gazette.

26 -26. Suspension of pension.

(1) Where an employee to whom a pension has been granted under this Act or under any written law is reappointed as a permanent employee, the Minister may suspend the pension during the period of his reappointment.

(2) Subject to subsection (1), where an employee has retired under paragraph (a) of section 11 and within a period of five years thereof such employee involves himself in any activity which may be in conflict with the purpose of his retirement, the Minister may suspend his pension until he reaches the age of sixty years or completes a period of five years' retirement, whichever is the earlier.

[Am. Act A1336; Am. by Act A1410:s.10]

(2A) Where an employee referred to in subsection (2) who was reappointed before 1 January 2012 had been given an option before such date and had not opted for the compulsory age of retirement of sixty years, subsection (2) shall apply to him with the words 'fi

27 -27. Payment without probate or letters of administration.

(1) Notwithstanding any written law to the contrary, where a person to whom any payment could be made under this Act and the regulations made thereunder dies before the payment is made the amount remaining unpaid may be paid to his dependants without probate or letters of administration.

(2) Where any payment is made in good faith under this section and in accordance with the provisions of this Act and of the regulations made thereunder, such payment shall constitute a full and proper discharge of all liability and no action, suit or proceedings for such payment or calling such payment in question be brought or shall lie against the Government or any of its officers or servants.

(3) For the purpose of this section -

(a) "dependant" means -

(i) a widow of a deceased;

(ii) a widower of a deceased;

(iii) a child of a deceased; or

(iv) the mother of a deceased employ

28 -28. Regulations.

The Minister may make regulations for the purposes of this Act, but such regulations shall not provide for any pension, gratuity or other benefit which is more favourable than the pension, gratuity or other benefit granted in accordance with the regulations made under the Pensions Act 1980.

29 -29. Previous actions.

Acts of any person or authority on behalf of the pensions authority pending the promulgation of this Act shall be deemed to have been properly done.

30 -30. Payment of reward for information.

(1) The pension authority may order the payment of such reward as it deems fit to any member of the public for information given leading to the conviction of -

(a) cases of cheating in order to enjoy the pension and other benefit conferred under this Act; or

(b) offences under the regulations made under this Act.

(2) Any reward paid under this Act shall be charged on the Federal Consolidated Fund.

31 -31. Winding up of pension scheme.

(1) The fund of a pension scheme of a statutory or local authority under the New Scheme shall be wound up on such date as the Minister of Finance may, in each particular case by notification in the Gazette appoint, and upon winding up of such fund all assets shall be transferred to, and the liabilities charged on the Federal Consolidated Fund.

(2) Notwithstanding any written law to the contrary, upon the winding up of the fund of the pension scheme of a statutory or local authority, the pension authority shall exercise the powers and perform the duties of the appropriate authority of such scheme.

(3) Nothing in this section shall be deemed to diminish the amount of pension, gratuity or other benefit to which an employee would have been eligible if not for this section.